The banking sector needs to pull its socks up when it comes to customer service and put the customer first.

That was the consensus among the room of more than 100 delegates representing the region's retail banking sector at the GCC Cards Summit in Bahrain.

'It is time to forge true customer relationships in the industry,' said MTI Consulting chief executive officer Hilmy Cader in the opening address.

'Banks are sitting on tonnes of live, accurate data and know exactly who their customer is.

'Now they must read this data with care and consideration, and deliver accordingly.

'New card products, services around relationships can be made and retained by listening, watching and most importantly by action,' he said.

'In the wake of the financial crisis frugality will be the new fashion and value will be in vogue,' he added.

'Customers will be looking to tightening their belts and wanting value for money and the financial sector will have to look to use customer relationship management rather than communicate with customers through mass broadcast methods.'

He also warned that new channels of distribution are changing the competitive landscape for cards.

'The dividing line between banks and telcos particularly is fast fading. No longer does one need a 'pin striped suit' to be in the card space.

'Indeed, telcos and even traditional retailers all have access to real-time customer data and they are showing a nimbleness to market.

'On the other hand, the banking sector is rather slow to the trot,' he added.

'Customer satisfaction is not isolated behaviour but is linked to employee satisfaction as well as quality of internal-department service in banks,' TNS financial services senior director Satish Dave said.

'The financial crisis has changed a lot of things,' he added.

'People have greater access to cards and they are more aware of fees and costs and are looking to get value for money.

'Customers are looking to get something in return for using one company's credit card. Institutions will have to look at loyalty programmes and convince customers they are getting value if they want to retain them,' he said.

This was an argument supported by Chouradvisor managing director Bassam Chour who shared his expertise on successful loyalty and retention strategies.

'Customer loyalty programmes are not an option but a given,' he said.

'Banks need to identify how to create successful programmes that address customers. The programmes need to evolve to meet changes in market.' The conference closes today.-TradeArabia News Service